Episode Overview
The most resilient contractors? Those who stop chasing pure volume and focus on the most profitable jobs, teams and product lines, says HARDI VP of Distribution Strategy Zachary Perge.
Financing options can increase the average ticket price by nearly $7,000, he says.
“ Contractors who understand and have adopted financing have had a lot of success,” Perge says. “I think embracing financing is really, really important right now and is a way that a lot of contractors have separated themselves.”
He believes most consumers don’t have a full grasp on the costs involved in an HVAC system.
“ Behind an American's car and their home, the most expensive thing they own is their HVAC system,” Perge says. “You don't buy your home all at once. You typically don't buy your car all at once… It's no different with financing [your] HVAC.”
He notes that a business owner is wise to do a deep dive on where profit sources are and not be looking to do as many jobs as possible.
“ You really need to do the homework of looking into your business at what is driving profitability,” Perge says. “If you are only chasing volume, you are going to leave yourself so vulnerable to a year when that volume isn't there. You are going to really, really, really be at a disadvantage.”
Successfully integrating financing into the sales process can turn repair opportunities into full replacement jobs, even in down years, he says.
Zachary Perge recently joined ServiceTitan’s Jackie Aubel on the “Toolbox for the Trades” podcast, which included Perge’s thoughts on:
[6:16] Numbers every contractor needs to understand to make better decisions
[18:26] Why owners should focus on profitability over volume
[28:45] Advice for contractors who want to integrate financing into their operations
[30:40] Using ServiceTitan to integrate financing into operations
[35:44] Educating homeowners about HVAC investments
Additional Resources
To hear more stories from the trades, subscribe to Toolbox for the Trades on Apple Podcasts, Spotify, Google, or anywhere you get podcasts.
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